Electricity prices fall on exchange for second consecutive month

In October, electricity exchange prices fell in all bidding areas of the Nordic countries’ Nord Pool exchange. Prices had entered a downward trend already in the previous month. The price was highest in the Latvian and Lithuanian bidding areas.

In the Estonian and Finnish bidding areas, the price of electricity dropped compared to the previous month by close to 9 per cent and the exchange price in both countries proved to be 46.36 euros per megawatt-hour. A price difference existed between the Finnish and Estonian bidding areas in only three of all of the month’s hours.

In the Latvian bidding area, the exchange price of electricity fell by 6.7 per cent to 55.04 euros per megawatt-hour; and in Lithuania, by 5.8 per cent to 55.68 euros per megawatt-hour. A price difference was seen between the Estonian and Latvian bidding area in the case of 418 hours and between the Latvian and Lithuanian bidding areas in the case of 50 hours. The Nord Pool system price fell in October by 10.3 per cent to 43.04 euros per megawatt-hour.

The power streams between Estonia and Finland flowed toward Estonia 87 per cent of the time and toward Finland 7 per cent of the time; no trade took place during 48 of the hours. Of the capacity allocated to the market, 45.5 per cent was used in the Estonian direction, and 0.8 per cent in the Finnish direction.

The power streams between Estonia and Latvia flowed toward Latvia most of the time, and toward Estonia 0.8 per cent of the time. No trade between the two countries took place during 11 of the hours. Of the capacity allocated to the market, 79 per cent was used up in the Latvian direction, and 0.1 per cent in the Estonian direction. In the Latvian direction, 100 per cent of capacity was used up in more than half of the hours.

Elering earned 1.2 million euros in revenue from cross-border transmission capacity allocation.

The range of carbon dioxide emission allowances affecting the price of electricity showed a declining trend for the first time in the last year and one-half. The price ranged between 16.02 and 22.11 euros per tonne. In September the price ranged between 18.87 and 25.19 euros per tonne and in October of 2017, the range was 6.88-7.81 euros per tonne.

Based on electricity futures prices on the month’s final day of trading on the NASDAQ OMX exchange, the average electricity exchange price in Estonia could be 50.88 euros per megawatt-hour in November and 51,35 euros per megawatt-hour in December. The expected electricity exchange price in Finnish bidding area in November is 50.55 euros per megawatt-hour and in Latvia, 54.35 euros per megawatt-hour. The respective figures in December are expected to be 51.10 and 54.95 euros per megawatt-hour.

All data are provided according to Central European time (CET).